Fulfilling our purpose to create value and improve lives through sustainable and responsible mining requires sustainability to be embedded throughout the business, a dedicated focus from our Board of Directors, committed executive leadership, and a compensation structure that incentivizes sustainability performance along with financial performance.
Board of Directors
The mission of Newmont’s Board of Directors (the “Board”) is to oversee the Company’s efforts to ensure long-term financial strength and create enduring value for all stakeholders. The Board also plays a critical role in assessing major risks; ensuring high standards of ethical business conduct; and advising and approving the sustainability and overall business strategies.
Our Board’s broad range of experience and perspective benefits the Company in many ways including enhanced governance and greater efficiencies. At the end of 2017, nearly 42 percent of our Board members were women, including Board Chair Noreen Doyle and two of the four committee chairs. Among the Board members who are men, one is Hispanic and one is African. In addition, five members reside outside the U.S., and all have extensive international experience.
Four Board committees provide oversight and guidance in key areas – Audit, Corporate Governance and Nominating, Leadership Development and Compensation and Safety and Sustainability – and each has a written charter outlining the authority, structure, operations, purpose, responsibilities and specific duties of the committee members.
Although primary responsibility for managing sustainability matters rests with Newmont management, the Safety and Sustainability Committee provides advice, counsel and recommendations to management and approves Newmont’s annual sustainability report. The Committee comprises six independent directors. Joseph Carrabba serves as the Chair, and members include Gregory Boyce, Noreen Doyle and Jane Nelson – who has a long and distinguished career advocating for sustainable business practices and is the Founding Director of the Corporate Social Responsibility Initiative at Harvard Kennedy School. Sheri Hickok and Molly Zhang both joined the Committee upon their appointment to our Board in July 2017.
The Committee meets quarterly and on an ad hoc basis as needed. In 2017, Committee members met four times to consider matters related to promoting a healthy and safe work environment and environmentally sound and socially responsible resource development.
While Newmont’s President and Chief Executive Officer visits each region at least once during the year, Board members also participate in site visits to observe and assess implementation of our policies and standards on the ground. One full Board site visit is scheduled each year, and in 2017 the Board visited our newest operation, Long Canyon in Nevada. Directors may also request individual or smaller group visits to any operation or project. For example, during 2017, a member of the Safety and Sustainability Committee visited the Cripple Creek & Victor mine in Colorado.
More information about Newmont’s Board members and committees is available in our 2018 Proxy Statement.
Newmont’s Chief Executive Officer and his executive leadership team (ELT) have primary responsibility for the day-to-day management of the Company and delivering on our strategy. The ELT has business – as well as personal – objectives aligned with each pillar of the business strategy, including sustainability and external relations. Key roles are as follows:
Chief Executive Officer
Holds ultimate responsibility for Newmont’s social, economic and environmental performance, and chairs quarterly health, safety and sustainability updates from global and regional team leaders. In 2017, Mr. Goldberg was inducted into the American Mining Hall of Fame in recognition of his leadership in mining safety and his accomplishments in improving company performance, delivering stakeholder value and advancing social and environmental practices.
Chief Financial Officer
Oversees the efforts to drive long-term financial performance and effective risk management.
Sustainability and External Relations
Has primary responsibility for the Company’s sustainability strategy, including overseeing the sustainability and external relations (S&ER) team members who implement the technical and strategic environmental, geopolitical, social and human rights programs and communicate with stakeholders.
Is responsible for Newmont’s strategy and business plan and optimizing the Company’s portfolio through mergers, acquisitions and divestment opportunities.
Is responsible for Newmont’s compliance with applicable laws and regulations, corporate governance, and its ethics and compliance program.
and Chief Technology Officer
Oversees Newmont’s global supply chain and business services as well as several functions – including information technology – that are responsible for delivering technology and innovation outcomes that drive sustainable competitive advantage and performance.
Leads Newmont’s human resources function and drives efforts to attract, develop and retain talent; strengthen global inclusion and diversity; provide local employment opportunities; and ensure workforce rights.
Chief Operating Officer
Delivers on-the-ground leading health, safety, social, environmental and operational performance, along with the Senior Vice Presidents of Projects and Exploration, the Vice President of Health, Safety and Security, and the Regional Senior Vice Presidents.
The ELT provides leadership, establishes priorities, and delegates matters relating to sustainability to teams and individuals. The S&ER group plays a central role in developing and implementing management frameworks, supporting the implementation of strategies and standards, and tracking and reporting on our performance on environmental and social matters. Other executives and functions across the business also have responsibility for sustainability-related programs and efforts. Examples include:
- Leaders across the business are accountable for implementing policies and standards on the ground, and will be required to certify on a quarterly basis that their respective region maintained effective governance controls;
- Every site general manager sponsors at least one of our fatality risks and leads a team that manages the critical controls and their performance criteria;
- Our technical services group evaluates technologies to keep people out of harm's way and improve how we manage energy, water, tailings and mine closure; and
- Cross-functional working groups are developing or leading global strategies and programs around country risk, human rights, supplier risk management and responsible sourcing, water stewardship, tailings management, climate change and mine closure.
Executives are held accountable for the Company's sustainability performance through Newmont’s performance-based compensation structure. Stock-based long-term performance incentives represent the largest component of executive pay to encourage sustained performance aligned with shareholder interests.
Safety and sustainability metrics represent 25 to 30 percent of our annual bonus, with the remaining 70 to 75 percent covering operating measures such as exploration, project development and financial performance (the percentage varies according to whether an employee is at the site, region or corporate level). Our safety metrics are based on our improvements to injury rates, health risks and critical controls for fatality risks, while the sustainability metrics relate to achieving the targets published in this report and our rating on the Dow Jones Sustainability Index (DJSI). Each region may also include sustainability targets that are priorities within their respective location – such as indigenous employment targets in Australia. For 2017, the Company performed above-target on the health, safety and sustainability metrics, which included being named industry leader for the DJSI.
Newmont holds an annual advisory vote on executive compensation to give shareholders an opportunity to approve, reject or abstain from voting on executive compensation programs and policies. More information on director and executive compensation and the process for communicating with the Board is reported in our 2018 Proxy Statement.